The IT industry’s shift towards Latin America and the growing number of women in tech-IT.
In 2021, we told ourselves that things would get better in 2022. But it didn’t: 2022 turned into a year of backsliding around the world. The stock market fell by almost 20% and dragged the tech industry down with it. Global inflation exceeded 13%, and the Federal Reserve responded by raising interest rates. Some experts say the US is on the verge of a recession similar to the Great Depression of the 1930s.
Global tech giants have begun mass layoffs – from warehouse workers to HR, marketing, and even top management. The full-scale war in Ukraine further destabilized the global economy. This has forced CEOs around the world to start optimizing their businesses.
Against this backdrop, technology continues to develop rapidly. Artificial intelligence is rapidly changing the responsibilities and essence of IT positions: for example, business analysts no longer need only Business Analysis skills.
Here are the main trends in IT that will affect hiring and team management in 2024.
#1: The labor market no longer belongs to the candidate
Covid brought easy money to companies, and many businesses spent more than ever before in terms of future revenues. However, already in 2022, a number of negative factors converged to affect company earnings. In the fourth quarter, a wave of cutbacks hit tech businesses as well.
In tech companies, the main cost is people. Since 2017, spending on salaries, stock options and benefits has increased significantly. When it came time to cut costs, the logical decision was to start with employees. Massive layoffs, freezing of vacancies and “benching” began. Top management, employees of HR, marketing, development, warehouses, retail stores, and others were laid off. Large outsourcers saw their orders fall, which also led to a wave of layoffs.
This has affected the global labor market – from 2022 to the present, it has been more employer-driven. The pool of candidates has increased, and companies have cut benefits and are saying goodbye to employees more easily, as they understand that they can easily replace IT specialists.
#2. Juniors are less willing to be hired
According to Djinni, since the beginning of the full-scale invasion, the share of technical vacancies requiring at least 3-5 years of experience has increased from 40% to 60%. In a market oversaturated with candidates, a company can afford to hire a better specialist for the same money. In addition, businesses are less willing to invest in training IT professionals, so they mostly hire people with middle management and higher levels.
This trend is also related to the fact that outsourcing giants used to be the largest employers of newcomers. However, as the number of orders decreased, they also began to prefer more experienced candidates. Remember, you don’t need any experience to play slots at an online casino. Trust the experts and choose only trusted casinos like https://www.richardcasino3.com/ for your gambling adventures.
However, despite the Junior job market crisis, the situation in the foreign market is somewhat better. Giant companies such as Google and Amazon have their own junior training programs. The best of them receive offers after completing the program.
#3. AI development is transforming responsibilities for all IT positions
People who are overwhelmed with routine tasks regularly put off important projects and feel less productive. At the same time, according to a study by the ADP Research Institute, 55% of employees have a positive attitude towards automating monotonous work.
Thanks to AI-based tools, professionals spend less time on routine tasks and can focus on more strategic processes.
According to Deloitte, 93% of a recruiter’s time is spent on repetitive tasks. At the same time, 65% of them can be automated. For example, with the help of the Ideal Product, which reviews and selects CVs. According to the developers, the service can save up to 4 hours a day.
But that’s not all: the demand for AI tools means that companies need people with skills in various disciplines to compete effectively. For example, the list of core skills of business analysts (BAs) already includes elements of Project and Programme Management.
Moreover, there is even a belief that AI may automate code development in the future, threatening the careers of junior and mid-level developers.
Modern AI tools can help with automatic code completion, technical documentation, code quality, and security. For example, AI-powered code generators identify patterns and anomalies that may indicate future security issues, helping IT to fix them before an application is deployed. AI can also review application and architecture configurations to ensure that they meet established security standards and GDPR, HIPAA, and PCI DSS compliance requirements.
#4. The number of women in IT is growing
Overall, the percentage of women in IT is still small compared to other professions. Even in Silicon Valley, according to an analytical report by Recode, about 20% of women work there. However, improvements are being made.
The share of women in IT has also increased (threefold) over the past 10 years and, according to the study, is over 24%. According to GlobalLogic, 1769 women work with the company, which is more than a quarter of its specialists. The largest share of women is in QA Engineering, Project Management, Business Analysis, and Support Management. There are not many women developers yet, but the dynamics are positive.
#5. The importance of cultural fit in hiring is growing
There is a lot of talk about cultural fit nowadays. More and more often, companies are relying on the candidate’s values instead of knowledge and practical experience and are very careful to check cultural fit during the hiring process.
If an employee does not share the company’s values, strategic vision, and management approaches, this can lead to financial risks. Unlike knowledge and skills, values cannot be taught, and therefore a specialist who is not “their own” will not fit in and will not be effective. The candidate may be asked during the interview:
- What motivates you in your work?
- How do you resolve conflicts with colleagues?
- A colleague can’t cope with a task and asks you for help. What do you do?
- How can you describe your previous employer? (checking the person’s tendency to negativism/gossip)
Based on the answers, the recruiter identifies the candidate’s motivation at work, typical communication styles with colleagues, ways to resolve conflicts at work and values.
#6. Services for reporting bullying and harassment are growing in popularity
According to CareerBuilder, 1 in 4 employees have experienced bullying in the workplace. According to another study by Women Who Tech, 44% of startup founders and 48% of tech industry workers have experienced harassment.
Companies are taking the first steps in this direction by encouraging employees to speak up about violations at work. However, it is important that employees are not afraid to do so:
Ensure anonymity. A SHRM study found that 76% of employees who had been harassed in the past year did not report it. The main reasons are shame and fear of retaliation. Anonymity is critical to creating a safe and reliable method of reporting misconduct.
Introduce reporting tools. STOPit Solutions, Work Shield, and SpeakfullyNow provide employees with a safe and secure way to report harassment or other workplace misconduct. Alternatively, a company can develop a customized solution.
Don’t turn a blind eye to the problem as if it doesn’t exist. Asking employees to sign non-disclosure agreements and filing defamation lawsuits after the fact is a (very) bad strategy. Don’t hush up the problem, work on it, and fire employees who spoil the overall team atmosphere, especially those who bully colleagues.
In 2015, Dylan Minor, a professor at Harvard Business School, and Michael Housman, chief analytics officer at Cornerstone OnDemand, studied the negative impact of toxic employees on a company. According to estimates, the most productive team member brings $5,000 in profit to the business in a year, while one toxic one brings $12,500 in losses. It turns out that the costs associated with hiring an employee prone to harassment and bullying are at least twice as high as the benefits of hiring a top performer.